AU: Gold reversal still falling short of price recovery; move out of commodities weighs on June futures
June Gold has fallen about 6.7% in the most recent sell-off but the past 2 day's rally have pared losses to down 4.3% amid panicked conditions in Europe and a bit of a contagion threat priced into U.S. Equities (growth concerns). The wholesale dumping of commodities to either shore up positions in other markets or just to preserve capital is largely to blame for the metals sell-off. The bid tone this morning may be a flight to quality trade that seeks some diversity from fixed income. Past correlations or inverse correlations don't mean much just now so the very strong dollar may be less of deterrent for commodities buyers. 9 day moving average at $1205.25 21 day moving avearge at $1196.69 200 day moving average at $1096.81 today
